Czech energy regulator confirms changes to regulated prices, cuts charges for large consumers

The Czech Energy Regulatory Office (ERÚ) has confirmed changes to regulated electricity prices that will lower renewable energy charges for consumers connected to higher-voltage grids. The changes mainly affect energy-intensive businesses. The office used an additional subsidy of 3.5 billion crowns, approved by the government in mid-December. ERÚ announced this today in a press release.

Two weeks ago, the government decided to release 3.5 billion crowns to help energy-intensive companies with energy prices. The money will be used to reduce the renewable energy charges paid by companies connected to high- and very-high-voltage grids, by an average of two-thirds. The support is intended for nearly 25,000 delivery points.

Under the government's original plans, the state was to provide a subsidy of 9.35 billion crowns for supported energy sources (POZE). This will now increase by 3.5 billion crowns. ERÚ has now reflected this increase in the charges paid by businesses connected to high- and very-high-voltage grids, based on their reserved capacity.

„As soon as the government decided to increase the subsidy, we launched a public consultation on changing the November price decision. The POZE contribution based on reserved capacity has fallen to just under 116,000 crowns per megawatt per month, a decrease of more than two-thirds compared with the original price decision,“ said Stanislav Trávníček, chairman of the ERÚ Council.

The POZE charge was originally set at 495 crowns per megawatt-hour consumed for all consumers. Following the adjustment, businesses connected to very-high-voltage grids will pay an average contribution of 328 crowns per megawatt-hour, while those connected to high-voltage grids will pay 388 crowns per megawatt-hour. The charge for consumers connected to low-voltage grids remains unchanged.

The revised price decision will take effect at the beginning of next year.

The regulated component of energy prices will rise significantly next year. For households, the regulated electricity component will increase by 65.7 percent year on year, which should mean an additional 1,077 CZK per megawatt-hour (MWh). An average household, which energy companies say consumes around three MWh a year, will therefore pay about 3,232 CZK more next year for the regulated component of electricity. For gas, the regulated component will be 38.8 percent higher, an increase of about 125 CZK per MWh. The regulated component will rise even more sharply for large consumers, despite the adjustments.

Energy prices consist of a commercial component set by suppliers and a regulated component administered by the state. Next year, the regulated component will account for more than 39 percent of the final electricity price for households and around 20 percent of the gas price. The regulated component makes up a smaller share of the final price for large consumers.

sip snm